Senate File 159 S-3006 Amend Senate File 159 as follows: 1 1. Page 1, line 21, by striking < 114-95 > and inserting 2 < 114-95, or an equivalent objective federal standard > 3 2. Page 1, line 25, after < 114-95, > by inserting < or an 4 equivalent objective federal standard, > 5 3. Page 2, line 4, by striking < 31 > and inserting < 1 > 6 4. Page 2, line 16, by striking < March > and inserting 7 < February > 8 5. Page 4, by striking lines 22 and 23 and inserting 9 < pupil participates in the program until the pupil becomes 10 ineligible under the program or until the remaining amounts are 11 transferred to the state general fund under subsection 8. > 12 6. Page 4, line 28, by striking < fees > and inserting < fees, 13 software, > 14 7. Page 5, line 7, after < education. > by inserting < The 15 cost of one computer or other portable computing device shall 16 be allowed as a qualified educational expense for a pupil if 17 the computer or portable computing device is used primarily for 18 the education of the pupil and if such a purchase has not been 19 made using funds from that pupil’s account in any of the three 20 immediately preceding fiscal years. > 21 8. Page 5, line 28, by striking < or from the pupil for 22 purposes of subsection 8, > 23 9. Page 5, lines 30 and 31, by striking < guardian, or a 24 pupil for purposes of subsection 8, > and inserting < guardian > 25 10. By striking page 6, line 34, through page 7, line 1, and 26 inserting < account in the student first scholarship fund, close 27 the pupil’s account, and transfer any moneys remaining in the 28 pupil’s account for deposit in the general fund of the state. 29 In > 30 11. Page 7, by striking lines 17 through 19 and inserting 31 < the student first scholarship fund, close the pupil’s account, 32 and transfer any moneys remaining in the pupil’s account for 33 deposit in the general fund of the state. > 34 12. By striking page 7, line 24, through page 8, line 14, 35 -1- SF159.196 (2) 89 md/jh 1/ 10 #1. #2. #3. #4. #5. #6. #7. #8. #9. #10. #11.

and inserting: 1 < 8. Moneys remaining in a pupil’s account when the pupil 2 graduates from high school or turns twenty-one years of age, 3 whichever occurs first, shall be transferred by the department 4 of education for deposit in the general fund of the state. > 5 13. Page 8, line 26, by striking < may > and inserting < shall > 6 14. Page 15, by striking lines 2 through 5 and inserting: 7 < z. A description of the proposed charter school’s staff 8 performance evaluation measures and compensation structure, 9 methods of contract oversight and dispute resolution, 10 investment disclosures, and conflicts of interest. > 11 15. Page 19, lines 32 and 33, by striking < performance 12 evaluation measures, compensation > and inserting < staff 13 performance evaluation measures and compensation > 14 16. Page 26, by striking lines 17 through 19. 15 17. Page 36, after line 22 by inserting: 16 < Sec. ___. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. > 18 18. Page 38, by striking line 13 and inserting < dollars per 19 student for the first year of the fee and set to raise an amount 20 equal to the actual cost of the electronic data collection 21 system minus administrative costs of the department related 22 to the system. If the cost of the system is funded through 23 collection of a fee by the department, after consultation 24 with stakeholders, the department shall adopt by rule the per 25 student fee for subsequent years based on the actual cost of 26 the electronic data collection system minus administrative 27 costs of the department. > 28 19. By striking page 42, line 14, through page 43, line 22, 29 and inserting: 30 < Sec. ___. Section 2.48, subsection 3, paragraph b, 31 subparagraph (5), Code 2021, is amended to read as follows: 32 (5) Tuition and textbook tax credits under section 422.12 33 422.12D . 34 Sec. ___. Section 422.7, subsection 55, Code 2021, is 35 -2- SF159.196 (2) 89 md/jh 2/ 10 #13. #14. #15. #16. #17. #18. #19.

amended to read as follows: 1 55. A taxpayer who is an eligible educator as defined in 2 section 62(d)(1) of the Internal Revenue Code is allowed to 3 take the deduction for certain expenses of elementary and 4 secondary school teachers allowed under section 62(a)(2)(D) of 5 the Internal Revenue Code , as amended by the federal Emergency 6 Economic Stabilization Act of 2008, Pub. L. No. 110-343, in 7 computing net income for state tax purposes in excess of 8 the amount of the taxpayer’s deduction for certain expenses 9 of elementary and secondary school teachers for federal tax 10 purposes allowed under section 62(a)(2)(D) of the Internal 11 Revenue Code, but not to exceed five hundred dollars . 12 Sec. ___. Section 422.12, subsection 1, paragraphs d and e, 13 Code 2021, are amended by striking the paragraphs. 14 Sec. ___. Section 422.12, subsection 2, paragraph b, Code 15 2021, is amended by striking the paragraph. 16 Sec. ___. NEW SECTION . 422.12D Tuition and textbook tax 17 credit. 18 1. For purposes of this section, unless the context 19 otherwise requires: 20 a. “Private instruction” means independent private 21 instruction as defined in section 299A.1, subsection 2, 22 paragraph “b” , competent private instruction under section 23 299A.2, or private instruction provided to a resident of this 24 state by a nonlicensed person under section 299A.3. 25 b. “Textbooks” means books and other instructional materials 26 and equipment used in elementary and secondary schools in 27 teaching only those subjects legally and commonly taught in 28 public elementary and secondary schools in this state and 29 does not include instructional books and materials used in 30 the teaching of religious tenets, doctrines, or worship, the 31 purpose of which is to inculcate those tenets, doctrines, or 32 worship. “Textbooks” includes books or materials used for 33 extracurricular activities including sporting events, musical 34 or dramatic events, speech activities, driver’s education, or 35 -3- SF159.196 (2) 89 md/jh 3/ 10

programs of a similar nature. 1 c. “Tuition” means any charges for the expenses of 2 personnel, buildings, equipment, and materials other than 3 textbooks, and other expenses of elementary or secondary 4 schools which relate to the teaching only of those subjects 5 legally and commonly taught in public elementary and 6 secondary schools in this state and which do not relate to 7 the teaching of religious tenets, doctrines, or worship, the 8 purpose of which is to inculcate those tenets, doctrines, or 9 worship. “Tuition” includes those expenses which relate to 10 extracurricular activities including sporting events, musical 11 or dramatic events, speech activities, driver’s education, or 12 programs of a similar nature. 13 2. The taxes imposed under this subchapter, less the credits 14 allowed under section 422.12, shall be reduced by a tuition 15 and textbook credit equal to fifty percent of the first two 16 thousand dollars which the taxpayer has paid to others for each 17 dependent in grades kindergarten through twelve, for tuition 18 and textbooks of each dependent who is receiving private 19 instruction or who is attending an elementary or secondary 20 school situated in Iowa, which school is accredited or approved 21 under section 256.11, which is not operated for profit, and 22 which adheres to the provisions of the federal Civil Rights Act 23 of 1964 and chapter 216. 24 3. The department, when conducting an audit of a taxpayer’s 25 return, shall also audit the tuition and textbook tax credit 26 portion of the tax return. 27 4. Any credit allowed under this section in excess of 28 the tax liability shall be refunded. In lieu of claiming a 29 refund, the taxpayer may elect to have the overpayment shown 30 on the taxpayer’s final, completed return credited to the tax 31 liability for the following taxable year. 32 5. Qualified educational expenses, as defined in section 33 257.11B, subsection 6, paid for with funds from an account in 34 the student first scholarship fund, shall not be included in 35 -4- SF159.196 (2) 89 md/jh 4/ 10

the calculation of the tuition and textbook tax credit under 1 this section. 2 6. Married taxpayers who have filed joint federal returns 3 electing to file separate returns or to file separately on a 4 combined return form must determine the tuition and textbook 5 tax credit based upon their combined net income and allocate 6 the total credit amount to each spouse in the proportion that 7 each spouse’s respective net income bears to the total combined 8 net income. Nonresidents or part-year residents of Iowa must 9 determine their tuition and textbook tax credit in the ratio of 10 their Iowa source net income to their all source net income. 11 Nonresidents or part-year residents who are married and elect 12 to file separate returns or to file separately on a combined 13 return form must allocate the tuition and textbook tax credit 14 between the spouses in the ratio of each spouse’s Iowa source 15 net income to the combined Iowa source net income of the 16 taxpayers. 17 Sec. ___. 2018 Iowa Acts, chapter 1161, section 118, is 18 amended to read as follows: 19 SEC. 118. Section 422.7, subsections 3, 7, 8, 9, 10, 11, 14, 20 15, 16, 20, 22, 24, 25, 26, 30, 35, 36, 37, 39, 39B, 40, 43, 45, 21 49, 53, 55, 56, 57, and 58 , Code 2018, are amended by striking 22 the subsections. 23 Sec. ___. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. 25 Sec. ___. RETROACTIVE APPLICABILITY. The following apply 26 retroactively to January 1, 2021, for tax years beginning on 27 or after that date: 28 1. The section of this division of this Act amending section 29 422.7, subsection 55. 30 2. The section of this division of this Act amending section 31 422.12, subsection 1, paragraphs “d” and “e”. 32 3. The section of this division of this Act amending section 33 422.12, subsection 2, paragraph “b”. 34 4. The section of this division of this Act enacting section 35 -5- SF159.196 (2) 89 md/jh 5/ 10

422.12D. > 1 20. By striking page 43, line 24, through page 47, line 31, 2 and inserting: 3 < SCHOOL DISTRICT ENROLLMENT WORKING GROUP 4 Sec. ___. SCHOOL DISTRICT ENROLLMENT WORKING GROUP. 5 1. The department of education shall convene a school 6 district enrollment working group to review the methodology 7 and timing of determinations of school district enrollment, 8 including examination of the current on-time funding authorized 9 under section 257.13, the budget adjustment authorized under 10 section 257.14, the types and amounts of funding paid for 11 students open enrolled under section 282.18, and alternative 12 methods for determining school district enrollments. 13 2. Voting members of the working group shall include 14 representatives from all of the following: 15 a. The Iowa association of school boards. 16 b. The school administrators of Iowa. 17 c. The urban education network of Iowa. 18 d. The Iowa association of school business officials. 19 e. A representative of a school district designated by the 20 rural school advocates of Iowa. 21 f. A representative of a school district designated by the 22 urban education network of Iowa. 23 3. Four members of the general assembly shall serve as 24 ex officio, nonvoting members of the working group, with one 25 member to be appointed by each of the following: the majority 26 leader of the senate, the minority leader of the senate, the 27 speaker of the house of representatives, and the minority 28 leader of the house of representatives. 29 4. The director of the department of education, or the 30 director’s designee, and the director of the department of 31 management, or the director’s designee, shall each serve as ex 32 officio, nonvoting members of the working group. 33 5. The working group shall submit its findings and 34 recommendations to the general assembly not later than December 35 -6- SF159.196 (2) 89 md/jh 6/ 10 #20.

1, 2021. 1 Sec. ___. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. > 3 21. Page 47, after line 33 by inserting: 4 < Sec. ___. Section 256.46, subsection 1, Code 2021, is 5 amended by adding the following new paragraph: 6 NEW PARAGRAPH . i. If the child’s former school or school 7 district, if located in this state, was unable to participate 8 in varsity interscholastic sports as the result of a decision 9 or implementation of a decision of the school board or 10 superintendent. 11 Sec. ___. Section 282.18, subsection 2, paragraph a, Code 12 2021, is amended to read as follows: 13 a. By March 1 of the preceding school year for students 14 entering grades one through twelve, or by September 1 of the 15 current school year for students entering kindergarten or for 16 prekindergarten students enrolled in special education programs 17 and included in the school district’s basic enrollment under 18 section 257.6, subsection 1, paragraph “a” , subparagraph (1) , 19 the parent or guardian shall send notification to the district 20 of residence and the receiving district, on forms prescribed 21 by the department of education, that the parent or guardian 22 intends to enroll the parent’s or guardian’s child in a public 23 school in another school district. If a parent or guardian 24 fails to file a notification that the parent intends to enroll 25 the parent’s or guardian’s child in a public school in another 26 district by the deadline specified in this subsection , the 27 procedures of subsection 4 apply. > 28 22. By striking page 47, line 34, through page 48, line 17, 29 and inserting: 30 < Sec. ___. Section 282.18, subsection 4, paragraph b, Code 31 2021, is amended to read as follows: > 32 23. Page 48, line 20, after < residence, > by inserting 33 < a change in a child’s residence from the residence of one 34 parent or guardian to the residence of a different parent or 35 -7- SF159.196 (2) 89 md/jh 7/ 10 #21. #22.

guardian, > 1 24. Page 48, line 24, after < program, > by inserting < initial 2 placement of a prekindergarten student in a special education 3 program requiring specially designed instruction, > 4 25. Page 49, line 11, after < 114-95, > by inserting < or an 5 equivalent objective federal standard, > 6 26. Page 50, after line 1 by inserting: 7 < Sec. ___. Section 282.18, subsection 9, paragraphs a, b, 8 and c, Code 2021, are amended to read as follows: 9 a. If a parent or guardian of a child, who is participating 10 in open enrollment under this section , moves to a different 11 school district during the course of either district’s academic 12 year, the child’s first district of residence as determined on 13 the date specified in section 257.6, subsection 1, shall be 14 responsible for payment of the cost per pupil plus weightings 15 or special education costs to the receiving school district for 16 the balance of the school year in which the move took place. 17 The new district of residence shall be responsible for the 18 payments during succeeding years. 19 b. If a request to transfer is due to a change in family 20 residence, a change in a child’s residence from the residence 21 of one parent or guardian to the residence of a different 22 parent or guardian, a change in the state in which the family 23 residence is located, a change in a child’s parents’ marital 24 status, a guardianship proceeding, placement in foster care, 25 adoption, participation in a foreign exchange program, or 26 participation in a substance abuse or mental health treatment 27 program, and the child who is the subject of the request is 28 enrolled in any grade from kindergarten through grade twelve 29 or who is a prekindergarten student enrolled in a special 30 education program at the time of the request and is not 31 currently using any provision of open enrollment, the parent or 32 guardian of the child shall have the option to have the child 33 remain in the child’s original district of residence under open 34 enrollment with no interruption in the child’s kindergarten 35 -8- SF159.196 (2) 89 md/jh 8/ 10 #24. #25. #26.

through grade twelve educational program. If a parent or 1 guardian exercises this option, the child’s new district of 2 residence is not required to pay the amount calculated in 3 subsection 7 or 8, as applicable, until the start of the first 4 full year of enrollment of the child. 5 c. The receiving district shall bill the first resident 6 district determined under paragraph “a” according to the 7 timeline in section 282.20, subsection 3 . Payments shall be 8 made to the receiving district in a timely manner. > 9 27. Page 50, by striking lines 2 through 9 and inserting: 10 < Sec. ___. Section 282.18, subsection 10, paragraph c, Code 11 2021, is amended to read as follows: > 12 28. Page 50, line 15, by striking < contiguous > and inserting 13 < contiguous > 14 29. Page 50, line 30, by striking < contiguous > and inserting 15 < contiguous > 16 30. By striking page 50, line 35, through page 52, line 13, 17 and inserting: 18 < Sec. ___. Section 282.18, subsection 11, paragraph a, Code 19 2021, is amended by adding the following new subparagraphs: 20 NEW SUBPARAGRAPH . (8) If the pupil participates in open 21 enrollment because of circumstances that meet the definition of 22 good cause under subsection 4, paragraph “b” . 23 NEW SUBPARAGRAPH . (9) If the board of directors or 24 superintendent of the district of residence issues or 25 implements a decision that results in the discontinuance or 26 suspension of varsity interscholastic sports activities in the 27 district of residence. 28 Sec. ___. Section 282.18, subsection 11, Code 2021, is 29 amended by adding the following new paragraph: 30 NEW PARAGRAPH . 0c. If a pupil is declared ineligible for 31 interscholastic athletic contests and athletic competitions in 32 the pupil’s district of residence due to the pupil’s academic 33 performance, upon participating in open enrollment, in addition 34 to any other period of ineligibility under this subsection, the 35 -9- SF159.196 (2) 89 md/jh 9/ 10 #27. #28. #29. #30.

pupil shall be ineligible in the receiving district for the 1 remaining period of ineligibility declared by the district of 2 residence. 3 Sec. ___. RETROACTIVE APPLICABILITY. The following apply 4 retroactively to July 1, 2020: 5 1. The section of this division of this Act enacting section 6 256.46, subsection 1, paragraph “i”. 7 2. The portion of the section of this division of this 8 Act enacting section 282.18, subsection 11, paragraph “a”, 9 subparagraph (9). > 10 31. By renumbering, redesignating, and correcting internal 11 references as necessary. 12 ______________________________ AMY SINCLAIR -10- SF159.196 (2) 89 md/jh 10/ 10 #31.